Post Office Savings Account


This scheme helps individuals, house-wives, minors and others in inculcating a habit of thrift in themselves.

Salient features of Post Offices Savings accounts

Who can open? Any resident adult individual singly or jointly with one or two other adults.

Minor's accounts can be opened through guardians.

A minor, who has attained 10 years age, can also open the account.

Minimum amountRs. 50/- in case of account without cheque book facility.

Rs. 500/- in case of account with cheque book facility.

MaximumuMaximum Rs. 1,00,000/- for an individual account, Rs. 2,00,000/- for joint account. No limit on group/institutional or official capacity accounts.
Interest RateCurrent Interest Rate for the Post Office Savings Bank Account is 3.5 per cent.

The interest for a month is calculated on the lowest balance at credit of an account between the close of the tenth day and end of the month. Such interest is calculated and credited in the account at the end of each year.

Nomination facilityAvailable
TransferabilityTransferable from one office to another.
Deduction u/s 80CNot available
Interest TaxabilityThe interest earned is exempt under section 10(15)(i).
Other featuresOnly one single and one joint account can be opened at one post office.

No interest is payable for the balance less than Rs.50 in any particular month and for the balance more than Rs.1,00,000/- in a single account and Rs.200,000 in a joint account in a year.

If the depositor dies and there is without a nomination in force at the time of his death and the amount due is not exceeding Sixty Thousand Rupees, the Department of Post Office may pay the same to a person appearing before him, who is entitled to receive it or to administer the estate of the deceased.